UMass Med gifts $1.58M to support Worcester library, Tech High

UMass Medical School Chancellor Michael Collins, left, and Worcester City Manager Michael V. O'Brien discuss the announcement of UMass making a $1.57 million donation to the city of Worcester for public library services and support for the biotech and bioscience programs at Worcester Technical High School. (T&G Staff Photo/BETTY JENEWIN)

WORCESTER 
The University of Massachusetts Medical School will make voluntary payments to the city over five years totaling nearly $1.58 million as part of an agreement reached by the two parties.

The money will be used to support additional services at the Worcester Public Library, as well as biotech and bioscience programs at Worcester Technical High School.

Dr. Michael F. Collins, chancellor of the medical school, said Tuesday the agreement is the culmination of long-term talks UMass has been having with the city about forging partnerships.

He emphasized the decision to make the voluntary payments is not connected to UMass' recent purchase of three buildings in the Massachusetts Biotechnology Research Park off Plantation Street.

Because of the medical school's tax-exempt status, those properties will be taken off the tax rolls beginning July 1 and the loss of tax revenue to the city could be at least $1.52 million.

Before those property transactions were concluded, Dr. Collins said he had already been having conversations with City Manager Michael V. O'Brien about ways that UMass could help support the city.

“Some people are going to want to relate this to the purchase of buildings,” the chancellor said in an interview. “I can't stop that, but it's really not what's behind this. Our interest is to help the city and help the residents of the city.

“We believe as a big and important institution in the city that when it's possible for us to assist the city to advance, we need to take a leadership role,” he added. “We've been talking about partnerships for a long time, long before the transaction was completed.”

Mr. O'Brien said the agreement was forged on “mutual respect, mutual goals and long-term benefits.”

“We understand we have a direct role in ensuring that UMass Medical School is as successful as it can be, and the chancellor and the UMass Med team recognize that a successful city is important to its long-term viability and continued success,” he said in an interview.

“The city will be much more successful with a thriving UMass Medical School, with its excellence in education and breakthrough science as a catalyst for our biotech cluster,” he added. “The results will be further economic development, job creation and retention, expansion of the city's tax base and worldwide recognition.”

Under the terms of the deal, UMass will make two donations to the city for each of five fiscal years, starting July 1. The donations will be made July 1 and Jan. 1 of each fiscal year, with the last one on Jan. 1, 2018.

The programs — Worcester Public Library and biotech and bioscience programs at Worcester Technical High School — selected by the city manager to receive that money are things that are consistent with the medical school's mission, Dr. Collins said.

He said the payments will be “front-end loaded” so they are greater in the early years and considerably less in the final year.

In the first year, fiscal 2014, the city will receive two donations of $350,000 from UMass. In subsequent fiscal years, the semi-annual donations will be as follows: $250,000 in fiscal 2015; $125,000 in fiscal 2016; $37,500 in fiscal 2017 and $25,000 in fiscal 2018.

Dr. Collins said the agreement was structured that way because UMass wants to fill the buildings it has acquired with commercial entities that will end up paying property taxes to the city.

In the long run, he said, the city could receive more in property taxes on the three Biotech Park buildings than what it had been receiving before UMass acquired them.

“Our goal is to fill those buildings up as soon as possible,” Dr. Collins said. “We are not commercial real estate developers. That is not our mission. What we are about is advancing science to cure diseases. The extent that we can partner with entities that are involved in drug development and device development, and the science that supports those is what makes us a successful medical school.

“We know we have the ability to put people (in those buildings) and do it quickly,” he added. “I hope the buildings are leased up with tax-paying entities pretty quickly so they are paying taxes to the city. I didn't need the buildings to put other nonprofits in them. The chance to put entities that can collaborate with us and the city to bring jobs, make discoveries that are going to change the future, that's what we're all about.”

The agreement comes as the Legislature's Joint Committee on Higher Education is scheduled to hold an oversight hearing Thursday regarding UMass' purchase of the three properties in the biotech park.

State Sen. Michael O. Moore, D-Millbury, said the oversight hearing will examine the details of the purchase and future plans for the properties. The hearing is scheduled for 1 p.m. at the Statehouse.

Meanwhile, members of the City Council praised Mr. O'Brien and Dr. Collins for being able to achieve such an agreement.

Councilor-at-Large Frederick C. Rushton, chairman of the council's Economic Development Committee, said UMass is following the model for building partnerships between private life sciences and public resources.

He said UMass' acquisition of the three Biotech Park properties will help the medical school and, more importantly, help Worcester build on its life sciences base.

“Understandably, it was hard to see this at first glance, but this will result in more quality jobs in the city of Worcester and add to its tax base,” Mr. Rushton said.

Councilor-at-Large Kathleen M. Toomey called the agreement a “smart plan” that matches the mission of the medical school while also alleviating city budget concerns caused by having the three properties taken off the tax rolls.

“I had full confidence that the city manager would be able to work this out,” Ms. Toomey said. “This is a smart plan because it shows what a partnership is all about. Working together, we can make sure that UMass and the city both succeed.”